Kotak Mahindra Bank Q4FY25 Results: Profit Slides 14%, But Asset Quality Shines—Is a Rebound Ahead? 04.05.2025

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Kotak Mahindra Bank Q4FY25 Results: Performance Snapshot

1. Consolidated Performance (Q4FY25)

  • Net Profit: ₹4,933 crore
    • YoY: ↓ 7.5%
    • QoQ: Not disclosed in source
  • FY25 Full-Year Net Profit: ₹22,126 crore
    • YoY: ↑ 21.5%, aided by a one-time gain of ₹3,013 crore from Kotak General Insurance divestment.
    • Adjusted Profit (ex-gain): ₹19,113 crore, ↑ 5% YoY

2. Standalone Banking Performance (Q4FY25)

  • Net Profit: ₹3,552 crore
    • YoY: ↓ 14%
    • QoQ: ↓ from ₹3,927 crore in Q3FY25 (approx. 9.5% decline)
  • Net Interest Income (NII): ₹7,284 crore
    • YoY: ↑ 5%
    • QoQ: Flat (Q3FY25 was ₹7,297 crore)
  • Other Income: ₹3,182 crore
    • YoY: ↑ 7%
    • QoQ: ↑ from ₹2,862 crore
  • Net Interest Margin (NIM): 4.97%
    • YoY: ↓ from 5.28%
    • QoQ: ↓ from 5.05%
  • Provisions & Contingencies: ₹909 crore
    • YoY: ↑ 245%
    • QoQ: ↑ from ₹563 crore

3. Asset Quality (Q4FY25)

  • Gross NPA: 1.42%
    • QoQ: ↓ from 1.50%
  • Net NPA: 0.31%
    • QoQ: ↓ from 0.41%
  • Fresh Slippages: ₹1,488 crore
    • YoY: ↑ 14%
    • QoQ: ↓ 10%

4. Growth Metrics

  • Advances: ₹4.44 trillion
    • YoY: ↑ 13%
  • Customer Assets (incl. credit substitutes): ₹4.78 trillion
    • YoY: ↑ 13%
  • Total Deposits: ₹4.68 trillion (avg.)
    • YoY: ↑ 15%
  • CASA Ratio: 43%
    • QoQ: ↑ from 42.3%
    • YoY: ↓ from 45.5%

5. Other Key Highlights

  • Credit-to-Deposit Ratio: 85.5%
    • QoQ: ↓ from 87.4%
  • Dividend Declared: ₹2.50 per share for FY25

Sentiment Analysis (Q4FY25):

  • Negative Sentiment:

    • Standalone net profit declined YoY and QoQ.
    • Net interest margin narrowed, indicating pressure on lending profitability.
    • Provisions surged significantly YoY and QoQ, reflecting rising credit risk or conservatism.

  • Neutral to Positive Sentiment:

    • Consolidated profit remained strong, especially post insurance divestment.
    • Stable NII and rising other income supported overall income profile.
    • Improvement in asset quality with lower GNPA and NNPA ratios.
    • Healthy credit growth and improved CASA ratio indicate underlying business strength.

  • Cautiously Optimistic Outlook:

    • Despite margin compression, asset quality is improving.
    • Credit growth remains healthy, suggesting potential for earnings rebound.
    • Higher provisioning may signal conservative risk management amid uncertain macro trends.

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